FHA Energy Efficient Mortgages for California Homes

FHA's Energy Efficient Mortgage program (EEM) helps California homebuyers or homeowners save money on utility bills. This is done by enabling them to finance the cost of adding energy efficiency features to their house as part of their FHA insured loan. EEMs recognize that reduced utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy efficient improvements…continue reading →

FHA delays HVCC for Bay Area Home Loans

FHA delays HVCC for San Francisco (SF) Bay Area Home Loans until February 15, 2010. FHA announced today that the enactment of Appraiser Independence has been delayed. This was originally planned for a January 1, 2010 implementation. On the lines of HVCC, the FHA policy prohibits mortgage brokers and commission-based lender staff from the ordering the appraisal or communicating directly with the appraiser at any stage during the transaction. Since implementation of the Home Valuation Code of Conduct (HVCC) for conventional loans in May 2009, many challenges and difficulties with appraisals have been…continue reading →

San Jose Weekly Mortgage Market Commentary 12/20/2009

The week that was: The statement from the last FOMC meeting wasnt much of a change. The fed stuck to keeping the rates low for "extended period". But how "extended" is "extended" - now that's anybody's guess! Freddie Mac's weekly Primary Mortgage Market Survey reported 30-year fixed-rate mortgage (FRM) averaged 4.94 percent with an average 0.7 point for the week ending December 17, 2009, up from last week when it averaged 4.81 percent. Last year at this time, the 30-year FRM averaged 5.19 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.37…continue reading →

Had a Short Sale – Do I now qualify for an FHA Loan in California?

Short sale is increasingly becoming a common option to sell a house in San Francisco (SF) Bay area and rest of California. A short sale is a transaction where a seller sells the property for less that what was owed. If you went through a short sale you could have this question - Do I now qualify for a loan? FHA recently came with a guideline on this question. Below are the highlights: You are not eligible for a new FHA mortgage if you pursued a short sale agreement on your principal residence…continue reading →

Holiday decorating 9-1-1

How to create a Chic, Easy, and Cheap holiday table setting in no time! So the big holiday countdown is on! It's nine days before Christmas.  No matter what holiday you celebrate, chances are you will be hosting or attending some type of seasonal gathering. For those of you brave enough to be hosting the gathering at your home, you are probably finalizing menus, drinks, desserts, seating, and activities to keep all the kiddos occupied. Well if we've learned anything from Martha Stewart, a huge part of a fantastic event is presentation!  Here…continue reading →

San Jose Weekly Mortgage Market Commentary 12/13/2009

The Week that was: The bond and mortgage markets were choppy, swinging on weak Treasury auctions (the 10 yr and 30 yr). Not much in the way of economic measurements but what there was were better than what had been expected. Retails in Nov were better than markets were looking for, the U. of Michigan consumer sentiment index indicated consumers are increasing their optimism about the economic outlook, and while somewhat ignored in the past couple of years as a positive, the Oct international trade deficit declined for the first time in years.…continue reading →

Seller Rent Back on a Bay Area Purchase

In home purchase transactions in San Jose and rest of the Bay Area, there are many times when the buyer and the seller are simply unable to agree upon a specified closing date. The Real Estate Agent involved can negotiate a 'rent back' period that is agreeable to both parties. This means the transaction technically closes, the loan for mortgage financing is funded, and ownership of the property is transferred into the buyer's name. However, the buyer does not take occupancy of the property until several days later. Instead, the buyer sets up…continue reading →

San Jose Weekly Mortgage Commentary 12/6/09

The week that was

  • Oct existing and new home sales were much better than economists thought, the manufacturing sector better than thought, and auto sales stronger.
  • The Nov employment report on Friday really shook things up; job losses only 11K with the unemployment rate lower, to 10.0% frm 10.2% in Oct and Sept.
  • Interest rates increased last week by 25 basis points for the 10 yr note and 30 yr mortgages. While there is a general view that the Nov employment report was skewed a little and the decline in job losses an anomaly, with long term interest rates at these historic low levels, no one is willing to stand on that thought and rates continued to increase.


2010 FHA Loan Limits for San Jose & Bay Area

Federal Housing Administration (FHA) today announced single-family loan limits for San Jose. These loan limits are effective for loans with credit approval issued on or after January 1, 2010 through December 31, 2010. One-Unit $ 729,750 Two-Unit $ 934,200 Three-Unit $ 1,129,250 Four-Unit $ 1,403,400 These loan limits are also available for the counties of Santa Clara, San Mateo, Alameda, Contra Costa and San Francisco. Home Equity Conversion Mortgages (Also called Reverse Mortgage) The national FHA loan limit for HECM in 2010 remains at $625,500 (150 percent of the national conforming limit). Complete…continue reading →

San Jose Weekly Mortgage Market Commentary 11/29/2009

The week that was:

  • The minutes from the 11/4 FOMC meeting were released. Fed's minutes reiterated the Fed isn't anywhere close to increasing interest rates.
  • Fed governors and regional bank presidents predicted the jobless rate will range from 9.3% to 9.7% in next year fourth quarter.
  • Oct personal income increased 0.2% and spending was up 0.7%.
  • The University of Michigan consumer sentiment index was 67.7 from 70.6 on the final read in Oct and slightly better than 66.0 two weeks ago.
  • Oct new home sales jumped 6.2%. There is a 6.7 month supply based on current sales, the lowest level since 12/06.
  • The Mortgage Bankers Association reported for the week ending November 20, 2009, mortgage loan application volume decreased 4.5% from one week earlier. The Refinance Index decreased 9.5% from the previous week The Purchase Index increased 9.6% from one week earlier.
  • The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.82% from 4.83%, with points increasing to 1.19 from 1.18 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.